An Empirical Study On The Relationship Between Technology Independent Directors And Enterprise Value

In order to perfect the governance mechanism of public companies, our country introduced the independent director system at the beginning of the 21 st century. Since the independent director system was implemented, whether the system could maximize shareholder value and influence enterprise value has been the focus of study. By reviewing these scholars’ s research, it is not hard to find that most scholars studies verify the positive influence of independent directors on enterprise value.With the progress of science and technology, technology innovation ability has been playing a more and more important role in promoting economic growth and social progress and safeguarding national security. And it is gradually becoming the core factor of an industry and even a country to win the competition. Some scholars began to pay attention to the role of "technology" in corporate governance. And they put forward to set up the specialized technology independent directors in independent directors. Technology independent directors refer to the expert independent directors who are able to determine all technical decisions in the company and are rich in theoretical knowledge and professional skills. As the double combination of a "technical" and "independent" director, can technology independent directors go beyond independent directors and play a more effective part in improving corporate performance? Due to the short time of technology independent directors emerging, there is not much related empirical research at home and abroad. This paper will choose the technology independent directors as the research object and empirically analyze the relationship between technology independent directors and enterprise value and the path of technology independent directors affecting enterprise value.The paper empirically examines the relationship between technology independent directors and enterprise value and the path of technology independent directors affecting enterprise value by all the Shenzhen A shares of public firm samples from 2007 to 2013.In this paper, through a review of the previous literature and related basic theory analysis, we first put forward the three hypotheses: technology independent directors can increase enterprise value(H1); technology independent directors can reduce agency costs by playing a supervisory role(H2); technology independent directors can promote the technological innovation of companies by playing an advisory role to increase enterprise value(H3). In the second, we choose the return on equity(ROE) as a measure of enterprise value, the management fee rate(MFR) as a measure of agency costs, and the number of patent application as a measure of technology innovation ability by combining with theoretical analysis, and establish the model one、model two、model three、model four、model five. We has carried on the statistical description using STATA12.0 software and analyzed the sample data using Pearson correlation analysis and multiple regression equation model. Consistent with our hypothesis, the empirical results show that there is a significantly positive correlation between technology independent directors and enterprise value, agency costs can play a mediating effect between between technology independent directors and enterprise value, technology innovation ability can play a mediating effect between between technology independent directors and enterprise value. Our hypothesis are verified. Finally, in order to enrich the theoretical basis of the establishment of technology independent directors from the perspective of corporate governance in China, the paper analyzes the empirical results, and put forward the next research direction.